Tactical change – 9 January 2025

Published  09 January 2025
   5 min read

The Multi Asset Team at Royal London Asset Management have made a tactical change to the asset allocation of the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs).

What’s changing?

We have increased our overweight allocation to equities, as a recent pullback in markets from record highs has seen investor sentiment move to oversold levels consistent with a contrarian buy signal. Furthermore, the macro backdrop remains supportive, with central banks continuing to ease policy while leading growth indicators are improving in the US. We have also added to our position in commodities, the asset class has outperformed of late on heightened geopolitical issues and signs of supply constrain. We have reduced exposure to bonds, as upside risk to inflation has seen the asset class struggle over recent weeks.

Keep up to date with Trevor’s latest views

You can access up to date views from Trevor on the market and the movements of the Investment Clock on our Latest Investment Clock updates page.

Latest tactical positions

  Overweight Neutral Underweight
Equities Increased    
Property     No change
Commodities Increased    
High Yield Bonds No change    
Government Bonds     Decreased
Index Linked Bonds     Decreased
Corporate Bonds     Decreased
Absolute Return Strategies (including cash)     Decreased

For individual portfolio changes, please see factsheets.